Bloomington, IL, February 28, 2025 – State Farm announced its 2024 financial results, highlighting its continued commitment to helping customers manage risk and achieve their dreams.
State Farm Corporate Office
In 2024, State Farm saw a rise of more than one million policies and accounts, demonstrating its dedication to serving more customers. Despite underwriting losses within the auto and fire insurance sectors, overall results improved compared to the previous year. State Farm’s life insurance companies also performed well, distributing $817 million in dividends to policyholders and issuing a record $122 billion in new policy volume, bringing the year-end 2024 individual life insurance in force to $1.2 trillion.
“After another year of catastrophe events, State Farm was there to help our customers recover from the unexpected and will continue to do so as we focus on our customers impacted by the devastating wildfires in California. As of February 26, we’ve received more than 11,750 total fire and auto claims related to the fires and have paid nearly $2.2 billion to our customers,” said Senior Vice President, Treasurer and Chief Financial Officer Mark Schwamberger.
Schwamberger continued, “Our customer-centered approach leads us to measure success in the number of promises kept. The financial strength of each affiliate is critical to our ability to keep those promises, and we will continue to take a state-specific approach in the way in which we operate.”
The net worth for State Farm Mutual Automobile Insurance Company reached $145.2 billion by the end of 2024, up from $134.8 billion at the end of 2023. This increase was partially driven by gains in the P-C companies’ unaffiliated stock portfolio due to rising U.S. equities, offset by the P-C group’s pre-tax operating loss.
The State Farm P-C group of companies reported earned premium of $103.0 billion and a combined underwriting loss of $6.1 billion. This marks a substantial improvement from the $14.1 billion underwriting loss on $87.6 billion in earned premium in 2023.
This improvement reflects significant improvements in auto lines underwriting results, partially offset by an increase in homeowners incurred catastrophe claims. The 2024 underwriting loss, combined with $6.0 billion in investment and other income, led to a P-C pre-tax operating loss of $111 million, a significant improvement compared to the $8.5 billion loss of 2023.
Total revenue, including premium revenue, earned investment income, and realized capital gains, reached $123.0 billion in 2024, a rise from $104.2 billion in 2023. State Farm’s net income for 2024 was $5.3 billion, a substantial shift from a net loss of $6.3 billion in 2023, and included $3.0 billion in realized capital gains, net of tax.
State Farm is focused on investing in its business, growing its customer base, expanding its digital capabilities, and providing an enhanced customer experience through better service, innovative products, and improved technology solutions. These initiatives support State Farm’s goal of being the top choice in the market.
State Farm’s insurance operations include fourteen P-C companies and two life companies, each managed individually. The P-C companies are primarily involved in automobile, health, homeowners, commercial multiple peril (CMP), and reinsurance lines of business. The life companies focus on individual life insurance and annuity products. The company offers a diverse range of products reaching over 96 million policies and accounts, with additional third-party offerings like annuities, banking, health, mutual funds, and pet medical coverage.
Key Business Segment Highlights
- Auto: Representing 65% of the P-C companies’ combined net written premium, the auto insurance segment reported earned premium of $67.5 billion with an underwriting loss of $2.7 billion. In 2023, earned premium was $56.1 billion, and the underwriting loss was $9.7 billion.
- Homeowners, CMP, Other: This segment accounted for 34% of the P-C companies’ combined net written premium. The earned premium was $34.5 billion, resulting in an underwriting loss of $3.6 billion. The 2023 figures were earned premium of $30.5 billion and an underwriting loss of $4.7 billion.
- Life: The State Farm Life Insurance Company and State Farm Life and Accident Assurance Company reported premium income of $6.7 billion and $817 million in dividends to policyholders. Net income for 2024 was $1.7 billion, with $1.18 Trillion in individual life insurance in force at year-end. In 2023, the company had premium income of $6.5 billion, dividends of $725 million, net income of $1.2 billion, and $1.15 trillion in individual life insurance in force.
- Health: The individual health insurance operations reported an underwriting loss of $130 million in 2024 on a net written premium of $731 million, excluding the change in the premium deficiency reserve. In 2023, the underwriting loss was $106 million on a net written premium of $729 million.
- Investment Planning Services: Total assets under management for the Investment Planning Services operation at the end of 2024 were $15.2 billion. State Farm VP Management Corp. and State Farm Investment Management Corp. reported a combined net loss of $33 million in 2024. Comparable figures for 2023 showed total assets under management of $13.8 billion with a net loss of $40 million.
It is important to note that although financial information is presented on a group/line of business basis, each State Farm affiliate must meet solvency and regulatory requirements individually. Securities are distributed by State Farm VP Management Corp.
About State Farm®: For over a century, State Farm has focused on helping people manage risks, recover from unexpected events, and achieve their dreams. Today, State Farm and its affiliates are the largest providers of auto and home insurance in the United States, serving over 91 million policies and accounts through more than 19,400 agents and 67,000 employees.
